China’s CALB, a leading electric vehicle battery manufacturer, announced on Friday an investment of €2 billion ($2.09 billion) in a new gigafactory in Sines, Portugal. The facility is expected to begin production in 2028 and will have an annual capacity of 15 gigawatt hours, which equates to approximately 187,000 electric vehicle batteries. The factory will primarily serve the European market.
This investment marks CALB’s first manufacturing plant in Europe and is projected to create 1,800 direct jobs. When the plant reaches full operational capacity, it is expected to contribute more than 4% to Portugal’s GDP. The establishment of the factory in Sines, located about 100 kilometers south of Lisbon, highlights CALB’s commitment to expanding its presence in the European electric vehicle market.
Portugal, alongside neighboring Spain, aims to leverage local lithium deposits to develop a comprehensive battery value chain. This includes mining, refining, cell and battery manufacturing, and battery recycling. By doing so, the region seeks to reduce its reliance on external sources, particularly countries like China, for essential raw materials needed for the green transition in the automotive industry.
In addition to CALB’s investment, Savannah Resources, a London-based company, plans to commence commercial lithium production at its Barroso project in northern Portugal by 2027. The Barroso deposit, which contains spodumene—a lithium-bearing mineral—is considered the most significant in Europe according to Savannah Resources. This development is expected to further bolster Portugal’s position in the global lithium market and support the growing demand for high-quality lithium required for electric vehicle batteries.
CALB’s initiative is part of a broader strategy to establish a localized supply chain for electric vehicle batteries within Europe. This move aligns with Europe’s efforts to enhance its self-sufficiency in critical materials and support the increasing demand for electric vehicles. The investment also underscores the importance of sustainable practices in the battery manufacturing process, ensuring that the growth of the electric vehicle industry is supported by environmentally responsible methods.
Source: Reuters
